Question
Now assume that TTC's period of supernormal growth is to last for 5 years rather than 2 years. How would this affect its price, dividend
Now assume that TTC's period of supernormal growth is to last for 5 years rather than 2 years. How would this affect its price, dividend yield, and capital gains yield? D0 1,64 rs 8% gs 6,5% gl 3%
a find the price today
b Finding the expected dividend yield
c Finding the expected capital gains yield.
d What will TTC's dividend yield and capital gains yield be once its period of supernormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supernormal growth, and the calculations are very easy.)
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